Your Guide To Making A Successful Renault PCP Claim
Renault PCP No Win No Fee Claims
UK residents who entered into a PCP (Personal Contract Purchase) agreement to buy new or used Renault vehicles before 28 January 2021 may be able to start a mis-sold car finance claim for compensation if commission arrangements between the salesperson and the finance company were not disclosed. In some cases, this led to unnecessarily high interest rates on fixed monthly payments, meaning some customers paid far more than they should have.
Let us put you in touch with the UK’s leading PCP claims solicitors to help you apply for compensation. It’s on a strict no win no fee basis, so you won’t pay a penny unless you receive compensation, and it’s free to check!
Why Choose PCP Claims UK
We will put you in touch with the UK’s top PCP compensation claims handlers to help you recover compensation for higher interest rates and inflated monthly repayments from dealers and brokers who didn’t give you all the facts at the start of the agreement. It’s strictly no win, no fee, and it’s completely free to check.
- Claim £1000s – Receive compensation for your mis-sold PCP finance agreement.
- Work with the pros – We team you up with the UK’s leading PCP claim solicitors.
- No win, no fee – Our no win no fee basis means no financial risk to you.
- 60-second form – Fill in our form to find out if you have a claim.
- Zero risk – We only share your data with solicitors if you’ll qualify.
How Was Mis-Selling On Renault Car Finance Discovered?
Personal Contract Purchase (PCP) deals have always been a popular choice for motorists and are available on almost all vehicle types and models.
Before 2021, a car dealer could earn more commission by altering the interest rate on a PCP agreement. Put simply, the dealer received more commission if the interest rate was higher. This was commonly not disclosed to Renault car customers, who ended up paying more than necessary on Renault deals.
In 2021, the Financial Conduct Authority (FCA) banned discretionary commission arrangements (DCAs). In January 2024, the FCA began reviewing historic PCP agreements, not just for Renault cars but also for other motor manufacturers.
This review was triggered by a decision by the Financial Ombudsman, who found in favour of a complaint against Barclays Financial Services, which had unfairly paid commission to a broker.
Barclays is challenging the decision in the High Court but, in the meantime, the floodgates have been well and truly opened to complaints about car finance companies from customers who took out deals unaware of the commission arrangements.
If you took out a PCP agreement on a new or used Renault car before 28 January 2021, you could be entitled to claim and receive compensation for mis-selling on your car finance loan.
How Do I Know If There Was A Discretionary Commission Arrangement On My Renault PCP Agreement?
Customers who bought Renault cars under a PCP scheme with Renault Finance or another provider organised by Renault before 28 January 2021 may be eligible to make a claim. Here are some key points.
- The mis-selling affected new Renault cars and used vehicles.
- It includes part-exchanges and trade-ins where your old vehicle was used to contribute to the sale and subsequent agreement.
- There must be a discretionary commission arrangement between Renault finance and the car dealer, which you didn’t know about.
Not all finance types are included in the FCA investigation; for instance, hire purchase schemes or HP are not part of the review. There are different finance types to enable motorists to access a new Renault car but PCP deals are by far the most popular choice.
A PCP agreement is different from a hire purchase agreement. They both have fixed monthly payments but a PCP agreement has an optional final payment, sometimes called a balloon payment.
Understanding Renault PCP Agreements
A Renault PCP agreement allows you to drive a new or used Renault for a set time period. It’s a popular choice for Renaults, including the Megane E Tech, the enduring favourite, the Renault Megane, and other models.
It’s easy to budget as the monthly payments are always the same. At the end of the fixed term, you can return the car and start a fresh contract on a new Renault vehicle or make a lump sum payment to own the car permanently.
It’s possible to claim for any Renault PCP agreement that had a discretionary commission arrangement taken out before 2021. But did you know that you can also claim if your PCP agreement ended more than six years ago, the loan is paid off, or you no longer have the car?
Which Motor Finance Companies Were Involved in PCP Discretionary Commission Arrangements?
Renault Finance was certainly involved in hidden DCAs, but not all manufacturers had their own in-house finance companies. Other industry providers were also implicated in this scandal, including Close Brothers, Black Horse Financial Services, Santander, and Barclays.
If your Renault PCP agreement is with one of these providers and there was a DCA in place which was hidden from you then you will still be able to make a claim.
How Much Compensation Could I Be Entitled To?
Some industry commentators are warning that the FCA investigation could be the tip of the iceberg and that this emerging issue is on par with the PPI scandal a couple of decades ago. The FCA has already advised motor finance companies to put aside substantial reserves in preparation for a deluge of compensation claims.
If your PCP agreement had a DCA, you could be entitled to the difference between the interest rate you were charged on your deal and the lower rate available at the time. This could amount to hundreds, if not thousands, of pounds! You’ll also receive interest at the statutory rate of 8% on this sum.
In the case already considered by the Financial Ombudsman Service, the review found that the claimant was charged an interest nearly double what was available. It’s also important to note that the vehicle’s condition and excess mileage won’t impact your claim.
If you had a PCP agreement taken out before 28 January 2021, you can still register your potential claim and should do this without delay.
Want to find out more? We’ll connect you with a law firm that works on a No-Win, No-Fee basis, so it won’t cost you anything to check your finance agreement and see if there was a dealer commission arrangement in place that you didn’t know about.
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Should I Make a Renault PCP Claim Now?
Like other motor finance providers, Renault Finance is waiting for the result of the FCA investigation. However, you can still start a claim now and start by finding out if the financial services company operated a discretionary commission arrangement with the dealer, which you didn’t know about.
Whilst the FCA enquiry is ongoing, the eight-week deadline for finance companies to provide a final answer to customer complaints on DCAs has been paused. However, you can still get the ball rolling and register your claim now.
